Ryanair loses out in Aer Lingus bid
Ryanair loses out in Aer Lingus bid - Dublin Airport News
Airport news for Dublin on 26/01/2009.
When the Irish Government indicated that it would not support the takeover bid, Ryanair said that it was disappointed, but that it would “respect and abide” by the government’s decision.
Twenty-five per cent of the shares in Aer Lingus are owned by Ireland’s government, which said that the €1.40 per share offer made by Ryanair "greatly undervalues Aer Lingus and a merger on the basis proposed would be likely to have a significant negative impact on competition in the market."
Transport Minister Noel Dempsey commented: "Because we live on an island Irish consumers depend very heavily on air transport. A monopoly in this area would not be in the best interests of Irish consumers."
Ryanair’s chief executive, Michael O'Leary, said in a statement released by the airline: “We don’t think it is in the best interests of Aer Lingus, which will be isolated as a small, peripheral, loss making airline, reduced to announcing so called ‘partnerships’ with other loss makers like United Airlines.”
He added: “It is also sad, when thousands of jobs are being lost in Ireland, that Ryanair’s offer to create 1,000 new Irish jobs in Aer Lingus over the next five years has been rejected.”